Coinbase has reported record-breaking Q4 revenue as trading volume and earnings exceeded analyst expectations.
Financial Results and Activity Surge
Coinbase's Q4 revenue hit $2.27 billion, up 130% year over year. Net income reached $1.3 billion, or $4.68 per share. The trading volume saw a massive 185% increase to $439 billion, largely driven by retail traders.
External Factors Influencing Growth
Coinbase attributes its record quarter to rising crypto prices and high volatility. The launch of Bitcoin ETFs in Q1 2024 and the election of a pro-crypto President and Congress in Q4 2024 boosted trading activity and regulatory clarity expectations.
Revenue Diversification and Future Plans
Coinbase is diversifying its revenue streams by expanding its subscription and services business. For Q1 2025, subscription revenue is projected between $685 million and $765 million. A major driver is the USDC stablecoin, with plans to enhance liquidity and user adoption.
Coinbase delivered impressive growth due to active trading and plans further revenue diversification. However, some analysts remain cautious about the current trading boom’s sustainability.
